2008 Year in Review: The early months were calm before the storm

The business scene in the first six months of 2008 looked much different than the final half of the year.

It was a time before many of us were familiar with terms like collateralized debt obligations, the TARP, and credit-default swaps. Of course, the foundation of many of the current troubles we find ourselves in had been laid long before they came to a head this fall.

Still, it was probably hard to believe during the first six months of the year that by the end of 2008, the federal government would be directly investing in the nation's biggest banks and the economy would be shedding jobs at a pace not seen in decades.

Closer to home, businesses were keeping busy. Many were bought and sold. Some grew. Some shrank.

Here's a look at a few of the highlights of the Central New York business scene from the first 26 weeks of 2008.

January

On Jan. 4, we reported on the first round of grants in Syracuse University's Enitiative Project, an effort to spark more entrepreneurship in the region.

SU announced the first round of grants in December. Enitiative funded 38 different projects with more than $578,000 in that round, and gave another $380,000 to 20 e-professors and e-practitioners. The e-professors and e-practitioners work on major entrepreneurial initiatives as well as providing leadership to the entire Enitiative Project.

In addition to SU, Enitiative partners include Cayuga Community College, Le Moyne College, Morrisville State College, Onondaga Community College, the State University of New York College of Environmental Science and Forestry, the Central New York Community Foundation, The Gifford Foundation, the Greater Syracuse Chamber of Commerce, National Grid, and Messenger Associates, Inc.

We also reported news that the POMCO Group, a benefits administrator specializing in self-funded plans, planned to add about 20 mid-level employees in several departments in the first quarter. Nearly all of the new employees were expected to work in POMCO's 75,000-square-foot headquarters on James Street in Syracuse. POMCO was boosting hiring to meet growth in clients.

We reported on Jan. 11 that Eric Mower and Associates (EMA) entered the Florida. market with the acquisition of a major advertising and public-relations firm there. EMA, based in Syracuse, bought Clarke Advertising & ,Public Relations of Sarasota, Fla. No financial terms were disclosed.

The deal created an agency with combined 2007 billings of more than $170 million and more than 200 full-time employees at offices in Buffalo, Rochester, Syracuse, Albany; Charlotte, N.C.; Atlanta, Ga.; and Sarasota.

"We have been focused for some time on extending our footprint in the Southeast and along the East Coast, so adding a significant presence in Florida is an exciting realization of our growth strategy," Eric Mower, chairman and CEO of EMA, said.

Bill Pierson, CEO and principal at Clarke, and Patricia Courtois, chief operating officer and principal, became partners in EMA and continue to lead the Sarasota office.

EMA later expanded further with more acquisitions during 2008.

Employee-benefits firm RMSCO, Inc. purchased a 45,000-square-foot building it had leased since 1999, we reported Jan. 18.

The move helped RMSCO meet the space challenges presented by its 40 percent increase in employees working at the building in the last nine years.

When RMSCO moved into the building at 115 Continuum Drive in Electronics Park in Salina in 1999, it leased the space from Electronics Park, LLC, a sister organization of the Metropolitan Development Association of Syracuse and Central New York, Inc. (MDA).

"Our business has been growing steadily since we moved here and we continued to develop areas of the building not used when we first moved in," Joan Osier, company president at the time said. "We looked at the circumstances [now] and decided it made more sense to own than rent."

We reported Jan. 25 that increased enrollment led to Empire State College's Central New York Center outgrowing its longtime home in downtown Syracuse and moving to a larger space in DeWitt.

After 15 years, the college's Central New York Center left its 9,000 square feet of space at 219 Walton St. in Armory Square in December 2007, and moved to 18,000 square feet of space in the former Telergy Building at 1 Telergy Parkway, located at 6333 Route 298.

"We had entirely outgrown our old space due to increased enrollments," said Deborah Armory, dean of Empire State College's Central New York Center.

About 750 students attend the center.

February

On Feb. 1, we reported Anaren, Inc. (NASDAQ: AMEN) was considering becoming more active on the acquisition front.

"It's certainly becoming a more active part of our growth strategy than it's been," Anaren president and CEO Lawrence Sala said during a Jan. 29 conference call discussing the company's quarterly earnings with analysts and investors. "Obviously, it takes a lot to get one to fruition. But we certainly have more resources applied and we're seeing more things that look reasonably possible to use than we have in a long time."

Anaren develops and manufacturers components and subsystems for wireless and satellite communications companies, as well as military customers.

Sala did not discuss details, but said company leaders have been looking at more potential acquisitions in the past six months than they have in the past six years. The company closed multiple acquisitions later in the year.

A week later, on Feb. 8, we carried the news that Strategic Partnership Services (SPS), a subsidiary of radio broadcaster Galaxy Communications, LP, could play a major role in Oswego's annual Harborfest in the coming years.

SPS and Oswego Harbor Festivals, Inc., the nonprofit group that runs the event, inked an agreement in February that made SPS responsible for selling sponsorships and promoting the event in Onondaga and Madison counties.

Harborfest, 20 years old, includes food, music, art, fireworks, and more. The event has a $1.5 million budget and delivers a $31 million booster shot to the Oswego-area economy every year.

On Feb. 15, we reported that Lambert Material Handling was moving from its 10,000-square-foot 201 Solar St. facility to a 19,000-square-foot building at 6581 Townline Road in Salina. Bob Manion, president, said the move would increase Lambert's efficiency because most of its operations could be handled under one roof at the larger facility. Lambert specializes in designing and installing material handling equipment.

In the Feb. 22 issue, we reported that Unshackle Upstate began an advertising campaign that included print ads and radio messages on National Public Radio stations. The Greater Syracuse Chamber of Commerce was one of five major regional partners sponsoring the ad campaign. The other partners are Buffalo, Rochester, Binghamton, and Utica. The ads were designed to motivate citizens to take action and support the efforts of Unshackle. The campaign came on the heels of former Gov. Eliot Spitzer's State of New York Address, State of Upstate speech, and his 2008 executive budget proposal. The governor's plans included a $1 billion Upstate Revitalization Fund to promote economic growth throughout the region. Spitzer resigned soon afterward amid a sex scandal.

On Feb. 29, we reported that Beacon Federal Bancorp, Inc. (NASDAQ: BFED) planned to build a new corporate headquarters on Bridge Street in DeWitt. The 30,000-square-foot building was to house the bank's administrative staff, its mortgage business, and commercial- and consumer-loan operations. The site was also to house Beacon's eighth branch and Beacon Comprehensive Services Corp., the bank's investment, tax, and insurance subsidiary. Beacon will move into the new facility in early July 2009.

March

On March 7, we reported that Central New York's largest health insurer had a new local leader. Excellus BlueCross BlueShield named James R. Reed president of its Central New York Region.

Reed had been serving as vice president of sales for Excellus' eastern region. He oversaw net growth in sales for the Central New York, Southern Tier, and Utica regions, Excellus said. Prior to that, Reed was vice president of sales in the Southern Tier Region and held several account-consultant positions in the sales department. All told, Reed had been with Excellus for 12 years. His internal experience was a key factor in his selection.

We reported March 14 that companywide growth in industrial-hygiene services and litigation support spurred Philadelphia-based consulting firm Colden Corp. to add three employees in its Syracuse-area office and relocate them to a larger facility. Colden relocated in mid-February from Widewaters Office Park in DeWitt to 5842 Heritage Landing Drive, located about a mile and a half across town.

Colden - an occupational health, risk management, safety and environmental-consulting firm that lists Lockheed Martin, Corning Inc., and Anheuser-Busch, Cos. as customers - moved its Syracuse-area office to accommodate the hiring of additional employees in its industrial-hygiene and litigation-support divisions.

On March 21, we reported that Northside Collision Centers planned to open a fifth collision-repair shop to meet growing customer demand, including fleet accounts, and facilitate further revenue growth. The company planned to open an 11,000-square-foot store at 6799 Townline Road in Salina, said Gary Bell, president and co-owner. Northside Collision had been steadily growing revenue by about 10 percent annually. Its growth was led by consistent sales from repeat customers and the growth of its fleet-repair service started 10 years ago, Bell said. We reported on another planned Northside Collision shop opening in Camillus later in the year.

March 28, we reported that supply and demand for hotel rooms in the Syracuse area had been nearly flat since 2001, according to a study from the Syracuse Convention and Visitors Bureau. Supply dipped by 1 percent in that span and demand dropped 2 percent.

"These are pretty scary flat lines if we were to continue on this pace," said David Holder, president of the visitors bureau. "We've got some serious work to do on creating demand."

During the same time period, however, revenue per available hotel room increased 17 percent, meaning hotels are weathering the demand issues by charging more, Holder added. The study was a snapshot based partially on interviews conducted with Syracuse-area visitors during some of the region's busiest travel months.

April

The April 4 issue brought news that LaVallee's USA Blackbelt Champions was moving to a new home in Liverpool and also opening a new location in Baldwinsville.

The martial-arts school planned to move from its current 7,000-square-foot location in the Lakeshore Plaza at 911 Old Liverpool Road to a new building of the same size at 318 First Street in the Village of Liverpool. LaVallee's also planned to open its 13th school in the Town Square Plaza at 80 Smokey Hollow Road in Baldwinsville.

Owner Jim Andrello, who's also the chief instructor at the Liverpool location, said he'd been looking for a new building for several years. "When I knew my lease was up about two years ago, we started looking and that building was for sale and we saw the opportunity that that could be a potential school," he said.

We reported April 11, that Morrisville State College was launching a new Renewable Energy Training Center using a $2 million grant from the U.S. Department of Labor. The programs associated with the center included some new courses that would eventually be part of associate's and bachelor's degrees in renewable energy.

"People involved in the industry trying to develop renewable-energy initiatives are looking for employees," said Christopher Nyberg, dean of agriculture and natural resources at Morrisville. "They don't know where to look for them."

Part of the grant went toward surveying the needs of employers in the area, although Nyberg said there's no doubt many companies need workers with skills in renewable energy.

On April 18, we reported that the Metropolitan Development Association of Syracuse and Central New York formed an alliance with the Southern Tier Opportunity Coalition (STOC), headquartered in Binghamton. STOC, a 501(c)(3) corporation, was formed in 2002 as a private-sector, academic partnership to spur economic growth in the Southern Tier. The alliance was a natural outgrowth of the vision of both organizations to leverage innovation and technology among local business expansions and new business ventures, the leaders say.

We reported April 25 that computer manufacturer Seneca Data launched an affiliated company aimed at refurbishing and remanufacturing. The business, Revonate Manufacturing, LLC, opened in February. The company receives thousands of desktops, notebooks, and monitors returned to retailers like Wal-Mart and Circuit City.

If repairs are necessary, Revonate's employees perform them and Seneca Data then sells the refurbished machines. Revonate remanufactures about 900 units a day and 19,000 units per month, according to the firm.

May

On May 2, we reported that solid loan growth, rising non-interest income, and continued good credit quality helped push first-quarter earnings higher at Community Bank System, Inc. (NYSE: CBU). The DeWitt based bank earned $10.9 million, or 36 cents a share, in the period, up 12 percent from $9.7 million, or 32 cents a share, a year ago. Those gains come after the bank's profits soared 45 percent in the fourth quarter of 2007.

"The first quarter was a good one for us that met our expectations," Mark Tryniski, Community Bank's president and CEO, said during an April 25 conference call with analysts to discuss the bank's earnings. "We're looking forward to the remainder of the year.

The Holiday Inn Syracuse/Liverpool began a $20 million construction project, we reported May 9. The project involves the addition of 10,000 square feet to the hotel, located at 441 Electronics Parkway in Salina, and the erection of a 123-unit Staybridge Suites hotel. Developers kicked off the project with a ceremonial groundbreaking May 7.

Developers said the project would create the Syracuse area's largest hotel and conference center complex.

"There's a need for additional space in the convention and meeting market," said Tiffany Gallagher, assistant general manager and director of sales and marketing. "We've turned away enough business to warrant this expansion."

On May 16, we reported that Byrne Dairy was planning to spend nearly $9.5 million to add 55,000 square feet to its existing facility at 6750 Benedict Road in DeWitt. The expansion was to provide more processing and packing space. The expansion will add 70 employees. Ultra Dairy will hire the new workers over the next three years. The Ultra Dairy plant started with a staff of 17 in 2004, which has grew to 91 in 2008.

We reported May 23 that the Syracuse Technology Garden launched a new program to help established area companies tap new markets around the state.

The effort grew out of a strategic analysis the Tech Garden's staff performed around the facility's three-year anniversary in December 2007. During the course of that work, Tech Garden leaders realized that over the years they had developed a potentially powerful statewide network of relationships with business groups, academic institutions, technology organizations, and economic-development groups.

They also knew that much of the Tech Garden's work focused on technology startups. Established, but still-growing firms, needed more assistance.

The new Fast Track Partner program aims to help those established companies generate more business and new partnerships by using the Tech Garden's numerous relationships throughout New York.

We reported May 30 that ENV Insurance Agency, a Clay-based firm specializing in employee-benefits insurance, doubled its client base in Watertown since the opening of its office there in 2006.

The ENV Insurance Agency, based at 7789 Oswego Road in Clay, opened a . Watertown office two years ago to handle its North Country customers. ENV employs 19 in its 5,000-square-foot Clay office and three in Watertown.

"We were getting more business up there and we needed to have a presence," said Edward N. Vaughn, senior partner.

The 2,000-square-foot Watertown office is located at 3841 County Route 121 in Watertown - the home of Watertown office manager, Gary Zehr. A salesperson and marketing employee also work at this office.

June.

We reported June 6 that Mary

Cotter would retire as president of Time Warner Cable's Central New York Division after 13 years.

"I think I've pretty much done what I can do here," she said. "This division is in the best shape it's ever been in."

Cotter, 61, spent 30 years in the cable industry altogether, all of it in Central New York.

We reported June 13 that just weeks after a fire destroyed much of the canning and packaging areas at the Matt Brewing Co. in Utica, the company was already back at work brewing and kegging beer.

"We're operating full speed and turning out the draught beer," company President Nicholas Matt told The Business Journal on June 10.

The May 29 fire, sparked by welding taking place inside the building, swept through the packaging building at the brewery, seriously damaging both the second and third floors of the building.

On June 20, we reported that M/E Engineering, PC had grown its operation in Syracuse to a total of 30 people since launching an office in the city five years ago. The firm announced 11 new Syracuse hires in June alone.

Joseph Straub, partner in charge of the Syracuse office located at 441 S. Salina St. and vice president at M/E, said the growth was companywide. In addition to Syracuse, Rochester-based M/E has offices in Buffalo and Albany.

The Albany location started about the same time as Syracuse and also now employs about 30. Companywide, M/E has about 190 people, Straub said.

The firm provides design work for building systems such as power, lighting, heating, alarms, gas, telephone, and more. It does work for projects like schools, colleges, hospitals, and nursing homes.

We reported June 27 that Syracuse and the central-upstate New York region are seen as one of the nation's leading regions in several sectors of green technology and innovation. And green industries are already generating a substantial share of the area's job growth.

That information came from a report by the Battelle Technology Partnership Practice, a division of the Columbus, Ohio-based Battelle Institute, an international science and technology research firm that explores emerging areas of science and develops and commercializes technology.

The Metropolitan Development Association of Syracuse and Central New York, Inc. (MDA), the Greater Syracuse Chamber of Commerce, the Syracuse Center of Excellence in Environmental and Energy Systems, and Empire State Development Corporation were among the partners that commissioned the study at the end of 2006.

The Battelle report said the Syracuse and central-upstate New York region has 419 firms and 10,290 jobs in green-technology sectors. The increase in green private-sector jobs represents 15 percent of job growth in the region over the last five years. Wages for these positions are 57 percent above the national average, according to the report.

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